Keppel Ltd. · SGX:BN4
Keppel — Q1 2014 Earnings Presentation
40 slides from Keppel's earnings presentation, Apr 16, 2014
Slide 1: First Quarter 2014 Financial Results
First Quarter 2014 Financial Results 16 April 2014 1
Slide 2: Scope of Briefing
Scope of Briefing Address by CEO Group Financial Highlights by CFO 2
Slide 3: Address by CEO
Address by CEO 3 (Cry) Corporation
Slide 4: Uneven Global Recovery
Uneven Global Recovery Encouraging growth signals from US Patchy recovery in Europe Volatility in emerging markets Lower growth in China 4
Slide 5: Performance Highlights
Performance Highlights 1Q 2014 net profit was S$339m Annualised ROE was 13.4% EVA was S$151m 5
Slide 6: Offshore & Marine
Offshore & Marine Keppel FELS, Singapore Sound industry fundamentals Stable Brent oil price at above US$100 per barrel. Sustained long-term investments by NOCs and IOCs. 6
Slide 7: Offshore & Marine
Offshore & Marine Delivered FPSO Armada Claire to Bumi Armada Built one of world’s largest jackup for Maersk 1Q 2014 New orders won: S$1.9b including 5 jackups, 1 FPSO turret fabrication, 5 specialised vessels. Net orderbook as at 31 March: S$14.4b with visibility into 2019. Major jobs complet
Slide 8: Offshore & Marine
Offshore & Marine Meeting customers’ needs Creating value through Near Market, Near Customer strategy. 30-year agreement to manage Titan Quanzhou Shipyard, China. Introducing innovative solutions such as the KFELS N Plus jackup for China. Lower hull of the first DSSTM38E semi for Sete Brasil F
Slide 9: Infrastructure
Infrastructure Shaping for growth Sharpening focus on energy and related infrastructure. Widening the mandate of the Infrastructure Trust. Greater Manchester EfW Plant Phase 1 has successfully completed its first burn as part Greater Manchester EfW Plant Phase 1 is undergoing of its commission
Slide 10: Infrastructure
Infrastructure Building logistics network and data centre portfolio Keppel Datahub 2 is on track for completion in end-2014. Logistics projects in Anhui, Jilin and Tianjin to be operational in 2015. Tampines Logistics Hub to be completed in early-2015. Tampines Logistics Hub, Singapore Keppel
Slide 11: Property
Property Highline Residences, Tiong Bahru, Singapore Park Avenue Heights, Chengdu, China Tapping regional demand for quality homes and office space Residential developments: - 3-ha West Jakarta residential site acquired in 1Q14. - Highline Residences in Tiong Bahru ready to launch in 2Q14. Comme
Slide 12: Property
Property Sustaining market interest Sold 714 homes in Asia in 1Q14. MBFC Tower 3 occupancy is now 96%. Positioning fee-based businesses for further growth Combined AUM of S$17.7b. Marina Bay Financial Centre and 8 Chifley Square, Australia Ocean Financial Centre, Singapore 12
Slide 13: Group Financial Highlights by CFO
Group Financial Highlights by CFO 13
Slide 14: 1Q 2014 Financial Performance
1Q 2014 Financial Performance Net Profit 5% to S$339m EPS 6% to 18.7cts Annualised ROE from 14.1% to 13.4% EVA from S$217m to S$151m Cash Outflow from S$438m to S$395m Net Gearing from net gearing of 0.11x to 0.14x 14
Slide 15: Financial Highlights
Financial Highlights S$m 1Q 2014 1Q 2013 % Change Revenue 2,996 2,759 9 EBITDA 478 451 6 Operating Profit 415 397 5 Profit Before Tax 492 496 (1) Net Profit 339 357 (5) EPS (cents) 18.7 19.8 (6) 15
Slide 16: Revenue by Segments
Revenue by Segments S$m 1Q 2014 % 1Q 2013 % % Change Offshore & Marine 1,919 64 1,702 62 13 Infrastructure 736 25 757 27 (3) Property 329 11 298 11 10 Investments 12 - 2 - 500 Total 2,996 100 2,759 100 9 16
Slide 17: Pre-tax Profit by Segments
Pre-tax Profit by Segments S$m 1Q 2014 % 1Q 2013 % % Change Offshore & Marine 304 62 272 55 12 Infrastructure 46 9 67 14 (31) Property 131 27 133 27 (2) Investments 11 2 24 4 (54) Total 492 100 496 100 (1) 17
Slide 18: Net Profit by Segments
Net Profit by Segments S$m 1Q 2014 % 1Q 2013 % % Change Offshore & Marine 231 68 208 58 11 Infrastructure 32 9 53 15 (40) Property 62 18 81 23 (23) Investments 14 5 15 4 (7) Total 339 100 357 100 (5) 18
Slide 19: Net Profit & EPS
Net Profit & EPS Net Profit (S$m) EPS (Cents) 2,237 124.8 1,946 619 1,846 109.4 34.5 102.3 1,540 1,591 90.4 844 4Q: 87.9 4Q: 246 346 47.4 685 14.0 19.3 38.0 636 36.1 296 16.9 521 3Q: 29.1 3Q: 406 457 22.8 305 17.3 25.3 726 2Q: 41.5 2Q: 352 384 347 20.0 21.6 19.2 751 41.9 1Q: 1Q: 1Q: 1Q: 272 298 312
Slide 20: Free Cash Flow
Free Cash Flow 1Q 2014 1Q 2013 S$m S$m Operating profit 415 397 Depreciation & other non-cash items 63 33 478 430 Working capital changes (760) (781) Interest & tax paid (54) (67) Net cash used in operating activities (336) (418) Investments & capex (125) (71) Divestments & dividend income 66 51 Net
Slide 21: Configured for growth and value creation through innovation and discipline
Configured for growth and value creation through innovation and discipline. 21
Slide 22: 1Q 2014 Results Q&A
1Q 2014 Results Q&A 22 iG yt) Corporation
Slide 23: Additional Information
Additional Information 28 CCS Corporation
Slide 24: Revenue by Geography
Revenue by Geography 1Q 2014 Total Overseas Singapore S$m Customers Customers % % Offshore & Marine 1,919 90 10 Infrastructure 736 12 88 Property 329 57 43 Investments 12 36 64 Total 2,996 67 33 67% of total revenue came from overseas customers 24 24
Slide 25: EBITDA by Segments
EBITDA by Segments S$m 1Q 2014 % 1Q 2013 % % Change Offshore & Marine 314 66 273 61 15 Infrastructure 73 15 78 17 (6) Property 92 19 84 19 10 Investments (1) - 16 3 (106) Total 478 100 451 100 6 25 25
Slide 26: Capital/Gearing/ROE
Capital/Gearing/ROE S$m 31 Mar 2014 31 Dec 2013 Shareholders’ Funds 9,993 9,701 Capital Employed 14,033 13,689 Net Debt 1,935 1,535 Net Gearing Ratio 0.14x 0.11x ROE 13.4% 14.1% 26 26
Slide 27: Offshore & Marine
OFFSHORE & MARINE 7 CCS Corporation
Slide 28: Financial Highlights – Offshore & Marine
Financial Highlights – Offshore & Marine S$m 1Q 2014 1Q 2013 % Change Revenue 1,919 1,702 13 EBITDA 314 273 15 Operating Profit 280 239 17 Profit Before Tax 304 272 12 Net Profit 231 208 11 28 28
Slide 29: Offshore & Marine Review
Offshore & Marine Review S$1.9 billion contracts secured in 1Q 2014: 5 Jackups, 2 Semi Repairs, 1 FPSO Turret Fabrication, and 5 Specialised Vessels Major contract completions in 1Q 2014: 1 Jackup, 1 Jackup Upgrade, 1 FPSO Upgrade, 1 Accommodation Semi Repair and 1 Bulk Carrier 29 29
Slide 30: Offshore & Marine Orderbook
Offshore & Marine Orderbook Order Balance Client S$m For delivery in 2014 6 JUs/3 Semi Upgrades/2 Semi Repairs/1 JU Integration/ Maersk/Ensco/UMW/GDI/Perforadora Central/ 3 FPSO Conversions/3 FPSO Upgrades/ Star Drilling/Diamond Offshore/JDC/Ezion/ 1 FPSO Modules Fab. & Integration/2 Turret Fabricat
Slide 31: Infrastructure
INFRASTRUCTURE 31 iG) Corporation
Slide 32: Financial Highlights - Infrastructure
Financial Highlights - Infrastructure S$m 1Q 2014 1Q 2013 % Change Revenue 736 757 (3) EBITDA 73 78 (6) Operating Profit 48 65 (26) Profit Before Tax 46 67 (31) Net Profit 32 53 (40) 32 32
Slide 33: Property
PROPERTY 33 iG] Corporation
Slide 34: Financial Highlights - Property
Financial Highlights - Property S$m 1Q 2014 1Q 2013 % Change Revenue 329 298 10 EBITDA 92 84 10 Operating Profit 88 77 14 Profit Before Tax 131 133 (2) Net Profit 62 81 (23) 34 34
Slide 35: Investments
INVESTMENTS 35 iG) Corporation
Slide 36: Financial Highlights - Investments
Financial Highlights - Investments S$m 1Q 2014 1Q 2013 % Change Revenue 12 2 500 EBITDA (1) 16 (106) Operating Profit (1) 16 (106) Profit Before Tax 11 24 (54) Net Profit 14 15 (7) 36 36
Slide 37: Forward-looking statements
This release may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regulatory chang
Slide 38: Address by Keppel Corporation's CFO at 1Q 2014 Results Presentation
ADDRESS BY KEPPEL CORPORATION LIMITED’S CHIEF FINANCIAL OFFICER, CHAN HON CHEW AT THE 1Q 2014 RESULTS PRESENTATION WEDNESDAY, 16 APRIL 2014 1. Group Financial Highlights by CFO (Slide 13) 2. 1Q 2014 Financial Performance (Slide 14) Thank you, Chin Hua. Good evening. Before I begin my presentation, I
Slide 39: Revenue by Segments (Slide 16)
4. Revenue by Segments (Slide 16) Overall revenue rose by $237 million or 9%, driven largely by the revenue growth in the Offshore & Marine and Property divisions. Revenue for Offshore & Marine improved because of higher volume of work. We have commenced revenue recognition on some jobs such as the
Slide 40: Net Profit and EPS (Slide 19)
7. Net Profit and EPS (Slide 19) Net profit of $339 million for the first quarter is $18 million below the corresponding period in 2013, while EPS of 18.7 cents is 1.1 cents lower than the previous year. If we exclude the one-off gains resulting from the reversal of provision due to the sale of the